Given the nature of tort reform laws in Texas, it is not
surprising to find that cases on appeal related to contract disputes fared much
better than cases based on tort claims. During the Sept. 2010 to Aug.
2011 time frame, Texas Courts of Appeal reversed almost half of the lower
court’s judgments based on tort claims (49%) versus a reversal rate of only one
third (32%) in contract disputes.
Although this may seem like a fairly small variance, it is
actually more significant than it appears at first blush. Due to enactment of
Texas’ tort reform laws, the total number of tort claims has dropped
significantly, as plaintiff’s counsel now choose to take more compelling cases
to court. The Office of Court Administration in Texas has reported a 12% drop
in the number of “injury or damage” cases filed from 2002 to 2010. So even the
“better” tort claims have even odds of being reversed on appeal.
In
summary, creditors should take extra pains to obtain signed agreements
documenting the terms of the deal and should include a contract-based claim
whenever possible.
By: Cynthia W. Veidt
Posts
